AMP Ohio to make presentation at Painesville City Council to clear up contested information

Speculation and various ways to crunch the numbers have been a source of confusion and conflict
at Painesville City Council meetings.
A representative of American Municipal Power Inc. will make a presentation at Monday’s regular council meeting, possibly clearing up some contested information.
Council, while city manager Rita McMahon was employed, adopted a power purchase agreement with AMP-Ohio as a way to access energy at peak times of year when the production from the city’s own coal-fired electric plant is insufficient.
Years later, the cost of energy is higher than was anticipated, which could be for many reasons.
The city paid AMP more than
$2 million toward a Meigs County power plant that was not constructed, which Ward 1 Councilman Andrew Flock said could be part of the higher prices.
Flock said AMP projected a price of $48.06 per megawatt hour for 2013.
The city is now paying $70.53 per megawatt hour, according to Finance Director Andy Unetic.
That price has been adjusted down from $104 as part of a “levelization” or adjustment program AMP is using to bring costs down temporarily, Flock said.
He and other members of council traveled to Columbus for an AMP meeting Oct. 28.
At that meeting, Flock said he asked if that adjustment money would need to be paid back and at what interest rate.
An AMP representative reportedly told him that it would be packaged into the utility bill but did not mention an interest rate.
Although City Manager Anthony Carson was not city manager at the time the contract was signed, he said he is familiar with the process because of his past experiences.
“I have been involved in purchase power agreements and you have to look at it in its entirety. I don’t think any of us can say if the contract is going to be one that will be beneficial or not,” Carson said.
Flock has asked for several months-worth of meetings for council to send a letter to the Ohio Attorney General’s office requesting an investigation into AMP-Ohio.
A resolution was eventually drawn and was tabled in light of the announcement that an AMP representative would be at the Nov. 18 meeting.
Flock said, “There’s questions, and I want to know what’s going on.”

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Devon covers Painesville City and schools, in-depth topics and splits his time on the copy desk. He's traveled around the world, worked in TV and loves coffee, music, theater and the OU Bobcats. Reach the author at DTurchan@News-Herald.com
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